Mortgage Market Guide -  (From www.shouldirefi.com)

Federal Reserve Chairman, Ben Bernanke expects rates to stay exceptionally low for an extended period.  Bernanke cited high unemployment, "subdued inflation trends & stable inflation expectations" as reasons for keeping federal funds rate near zero. 

This is good news for our spring and summer market.  Now is the time to think about getting your home ready to sell.  Buyers are still trying to take advantage of the first time home buyer tax credit.

Taken from the Wall Street Journal- November 24th 2009

Home resales leaped in October, rising far more than expected as a fat tax credit offset fears about joblessness.  Sales of existing homes increased by 10.1% to a 6.10 million annual rate from 5.54 million in September, the National Association of Realtors said Monday. Inventories kept shrinking. Prices fell, but the NAR said the decline was the smallest in more than a year. 

The 6.10-million rate was the highest since February 2007. Economists surveyed by Dow Jones Newswires expected a 2.3% increase in sales during October, to a rate of 5.70 million.

"Many buyers have been rushing to beat the deadline for the first-time buyer tax credit," NAR economist Lawrence Yun said.

Aside from the tax credit, low prices and mortgage rates have drawn in buyers, concerned as the U.S. unemployment rate climbed in October to 10.2%. The NAR reported the median price for an existing home last month was $173,100, down 7.1% from $186,400 in October 2008. The average 30-year mortgage rate was 4.95% in October, down from 5.06% in September, Freddie Mac data showed.

September sales rose 8.8% to 5.54 million; the NAR originally reported sales for that month jumped to 9.4%, to 5.57 million. Existing-home sales, year over year, were 23.5% higher last month than the level in October 2008.

The October surge in sales follows a very disappointing housing sector report last week showing U.S. construction tumbled in October to the lowest point in six months. A reason for the sharp, unexpected drop might have involved uncertainty over a government tax incentive for home buyers that had been due to lapse in November.

Congress extended the tax credit earlier this month through April, a move seen fueling sales and construction into the new year.

Inventories of previously owned homes decreased by 3.7% at the end of October to 3.57 million available for sale. That represented a 7.0-month supply at the current sales pace, compared to 8.0 in September.

Regionally, sales in October compared to September rose 11.6% in the Northeast, 14.4% in the Midwest, 12.7% in the South, and 1.6% in the West.

Of the 6.10 million in overall U.S. sales, 30% were distressed, which includes foreclosures. That compares to a range of 45% to 50% in months during late 2008 and early 2009.  (Bater, 2009, The Wall Street Journal)

Key points regarding short sales:

**Homeowners who owe more than their homes are worth don't automatically qualify for a short sale.

Here are a few things that will be required to proceed with a short sale.  The borrower will be asked to prepare a financial worksheet, a hardship letter, bank statements, paycheck stubs and tax returns.

There is a one page document that your Real Estate Broker can go through with you to determine if you are a candidate.

A homeowner does not need to be in default to consider a short sale.  Lenders may suggest a loan modification first.  If that is not possible, then the short sale comes in to play.

The biggest mistake homeowners make is waiting until they are 3 month or more behind in mortgage payments.  If you are in trouble, call your lender immediately.  Over 60% of homeowners who have been foreclosed upon, did not even contact their lender.

You may have heard statistics on short sales that are not encouraging.  As time progresses, more lenders are having a shorter turn around time.

A short sale effects your credit score for approximately 2 years and a foreclosure stays with you for 7 years.

Most importantly, call a Real Estate Broker who has experience in negotiating short sales.  They will be able to guide you through the process.

RE/MAX Ranked as Top Real Estate Franchise

National Survey Places RE/MAX Ahead of all Competitors

Denver, CO (Vocus/PRWEB ) October 21, 2009 -- RE/MAX International Inc. has joined the exclusive ranks of the most successful franchise chains in the world, after being named to the Franchise Times Top 200. RE/MAX made its debut in the number 12 position in the 2009 ranking, in front of all other real estate competitors, and in the company of such top franchises as McDonalds, 7-Eleven and Marriott Hotels.

"The RE/MAX Network continues to grow because we offer so much value to our franchise owners," says Margaret Kelly, CEO of RE/MAX International. "Global brand recognition, the industry's most extensive educational resources, and all the support our offices need to be productive and successful. We like to tell our owners, that at RE/MAX, you're in business for yourself, but not by yourself."
   
Since the beginning of 2009, nine countries have joined the RE/MAX Network and RE/MAX International has sold nearly 400 franchises worldwide. RE/MAX has an international presence in more than 70 countries, more than any of its competitors.
The Franchise Times honor is the second time this year that RE/MAX has been recognized in the franchise community. In January, RE/MAX was the highest ranked real estate franchise in Entrepreneur Magazine's 30th Annual "Franchise 500 Survey," a tribute the company has received in nine out of the last ten years.
   
RE/MAX has also been recognized as one of the "Top 25 Franchise Opportunities" by Hispanic Enterprise, and one of the "Top 50 Franchises for Minorities" by the National Minority Franchising Initiative.
And, in 2009, for the third year in a row, RE/MAX was ranked on the list of America's "Top 10 Military Spouse-Friendly Employers," according to Military Spouse Magazine.

The Franchise Times Top 200 is an annual financial snapshot of the 200 most successful U.S.-based franchise companies as measured by worldwide sales. The complete list of honorees appears in the October issue of Franchise Times.

For information on RE/MAX International visit: www.remax.com or www.joinremax.com
For more information on the Franchise Times Top 200, visit: www.franchisetimes.com

About RE/MAX International, Inc.:

RE/MAX was founded in 1973 by Dave and Gail Liniger. From a single office in Denver, Colorado, it has grown into a global network of nearly 100,000 Sales Associates in more than 70 countries, an international presence greater than any of its competitors.

RE/MAX has been honored as the leading real estate franchise for 9 of the last 10 years in the oldest and most respected ranking, "The Franchise 500 Survey," published by Entrepreneur Magazine.

Today, all the home listings in thousands of cities and towns can be found at www.remax.com, which is the most visited real estate franchise web site.
(ComScore, Jan.-June 2009; Compete.com, Feb. 2008-June 2009; Hitwise, Jan.-June 2009)

RE/MAX International is proud of its Premier Community Citizenship, which has raised over $100 million for deserving organizations like Susan G. Komen for the Cure, Children's Miracle Network and The Sentinels of Freedom Foundation.

Contact:
    
Shaun White
Vice President, Corporate Communications
RE/MAX International, Inc.
Direct 303-796-3405
shaunwhite (at) remax (dot) net

The RE/MAX Network continues to grow because we offer so much value to our franchise owners Global brand recognition, the industry's most extensive educational resources, and all the support our offices need to be productive and successful. We like to tell our owners, that at RE/MAX, you're in business for yourself, but not by yourself.

Everything you need to know about the $8000 Home Buyer Tax Credit!

http://www.youtube.com/watch?v=qeDp_w3oiqg

Mortgage rates hold steady

As investors try to assess the pace of economic recovery, interest rates are not moving much - and aren't expected to in the near term.

NEW YORK (CNNMoney.com) -- Home mortgage rates were nearly unchanged from the previous week as investors weigh better-than-expected corporate earnings against the record volume of debt the government is selling.

The average 30-year fixed mortgage edged up to 5.56% from 5.55% the week prior, and the 15-year fixed dipped to 4.88% from 4.89%, according to the weekly national survey from Bankrate.com.

Last week, mortgage rates were nearly unchanged, as well. "Mortgage rates remain range-bound as investors sort out uncertainty about the economy, corporate earnings, and the future path of interest rates," the report noted.

Mortgage rates move in tandem with Treasury yields. In particular, the 30-year fixed mortgage rate tracks the benchmark 10-year Treasury yield.

Investors tend to buy up Treasurys, or government debt, in times of economic uncertainty, or when Wall Street is struggling. Uncle Sam's debt is considered an ultra-safe investment. Meanwhile, when Wall Street is on a run, investors dump Treasurys for more attractive yielding investments.

The Treasury market is also being affected by the record volume of debt the government is selling to fund its stimulus efforts. The onslaught of supply pushes debt prices lower, which pulls yields higher. Bond prices and yields move in opposite directions.

In an effort to contain the rise in debt yields - and thereby mortgage rates as well - the government launched a debt buyback program. But analysts have argued that the program is not big enough to make a significant difference in rates.

"With the Treasury issuing large blocks of debt, investors are now seeking clarification on whether the Federal Reserve will extend the program of government debt buy backs to keep a lid on long-term interest rates including fixed mortgage rates," the report said.

Bankrate also conducts a forward-looking survey by asking a panel of mortgage experts to predicts which way the rates are headed over the next 30 to 45 days. The consensus is mixed: 38% say rates will fall, 31% say rates will rise, and 31% say rates will remain unchanged.

Even though mortgage rates have been climbing higher, they remain significantly below this time last year.

The average 30-year fixed mortgage rate was 6.7% at the same time last year, which means that a $200,000 loan would have had a monthly payment of $1,290.56. At the current rate of 5.56%, the monthly payment for the same loan would be $1,143.12, $147 less than last year.

Adjustable-rate mortgages were slightly higher, the report said, with the average 5-year ARM ticking up to 4.95% from 4.93% last week